Can You Lose Your Car If You File Bankruptcy

According to Nolo “If you file for bankruptcy and include your car loan in the bankruptcy the lender will be notified of the bankruptcy and will probably repossess your car. But if you reaffirm your debt you agree to continue making your car loan payments and the lender will not repossess your vehicle.”

So if you file bankruptcy and don’t include your car loan in the bankruptcy your lender may try to repossess your car. However if you reaffirm your debt you agree to keep making car loan payments and the lender won’t repossess your car.

Table of Contents

Are you able to lose your car if you file bankruptcy?

Yes you are able to lose your car if you file bankruptcy.

What are the consequences of losing your car in bankruptcy?

The consequences of losing your car in bankruptcy are that you will have difficulty in getting to work school and other important places.

How can you keep your car if you file bankruptcy?

You can keep your car if you file bankruptcy by reaffirming the debt redeeming the car or proposing a plan to the court.

What is a reaffirmation agreement?

A reaffirmation agreement is a legally binding contract between you and the lender that states you will remain liable for the debt and will continue making payments on the loan.

What is redemption?

Redemption is when you pay the lender the total value of the vehicle.

What is a proposed plan?

A proposed plan is a payment plan that you propose to the court that states how you will repay the lender the money you owe on the car.

Will you still owe money on the car if you reaffirm the debt?

Yes you will still owe money on the car if you reaffirm the debt.

What is the difference between reaffirming the debt and redeeming the car?

The difference between reaffirming the debt and redeeming the car is that with reaffirming the debt you are still liable for the debt and will continue making payments on the loan while with redeeming the car you pay the lender the total value of the vehicle.

Can you file bankruptcy if you are behind on your car payments?

Yes you can file bankruptcy if you are behind on your car payments.

What happens to your car if you file bankruptcy and are behind on your payments?

If you file bankruptcy and are behind on your payments your car may be repossessed.

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How can you avoid having your car repossessed if you file bankruptcy?

You can avoid having your car repossessed if you file bankruptcy by reaffirming the debt redeeming the car or proposing a plan to the court.

What will happen to your car if you do not reaffirm the debt redeem the car or propose a plan to the court?

If you do not reaffirm the debt redeem the car or propose a plan to the court your car will be repossessed.

How long do you have to reaffirm the debt redeem the car or propose a plan to the court?

You have until the bankruptcy case is over to reaffirm the debt redeem the car or propose a plan to the court.

What type of bankruptcy should you file if you want to keep your car?

If you want to keep your car you should file Chapter 13 bankruptcy.

What is Chapter 13 bankruptcy?

Chapter 13 bankruptcy is a type of bankruptcy that allows you to keep your property and repay your debts over a three- to five-year period.

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